WHY CANB WILL GO PARABOLIC IN 2018
Perhaps the most important factor to evaluate when analyzing a stock and attempting to develop an accurate predictive model of its price potential is to take a look at the history of similar stocks
Of course the biggest problem with that approach is that every stock is different, so one must select the most appropriate comparators, even if there are vast differences in company-specific features
Given the fact that CANB is a pure play CBD Oil Product stock, and pure play CBD Oil stocks have been by far the most explosive subsector in the Hemp & CBD Sector over the past 2 years, along with the fact that ones with actual revenue are pretty scarce, it isn’t very difficult to locate them
So let’s take a look at the most prominent American ones
POTN and CVSI have been two of the biggest runners we have seen in the 2017-2018 time period
Investors have displayed a strong tendency to become infatuated with CBD Oil, as it has surged into the consciousness of the mainstream over the past 6-12 months
And the excitement surrounding the medicinal benefits and excellent side effect profile of CBD Oil has driven consumers of all ages to seek it out
The resulting skyrocketing revenue growth of the CBD Oil economy has caused prospective investors to search for and pile into companies which have demonstrated consistently increasing sales of their CBD products
As a result, we have all witnessed truly parabolic movement in a pair of CBD Oil stocks already this year
On 4/24/17, POTN traded at a low of $.015 and by 1/26/18 it touched $.96 for a return of 6300% in only 9 months
Parabolic movement typically happens at the tail end of a rally, and POTN investors who bought in at $.06 on 12/26/17 saw it reach $.96 on 1/26/18
That’s a whopping gain of 1500% in only 1 month
CVSI is the other classic example in 2018
On 11/2/17 CVSI traded at $.14 and by 8/20/18 — that was yesterday — it hit $9.20, for a gain of 6500% in only 9 months
That’s an eerily similar return to POTN’s gain of 6300% in 9 months
Over a shorter time period of the past 4 months, CVSI moved from $.42 on 4/12/18 to $9.20 on 8/20/18 for a gain of 2100% in 4 months
The main driver of such amazing gains is not based on company fundamentals but on investor sentiment
Throw in a very small sample size of OTC CBD Oil stocks and the difficulty of readily gaining investment exposure in quasi-legal CBD Oil on the NYSE or the Nasdaq and that’s a recipe for a sentiment-driven SUPERMANIA
At their respective peaks, POTN reached a market cap of $557M on 1/26/18 and CVSI attained a market cap of $846M on 8/20/18 — that was yesterday
And it already appears that many who are in CVSI are already looking for the next parabolic CBD Oil runner in 2018, which would make “the next one” the 3rd CBD Oil stock to participate in a SUPERMANIA this year alone
The strange thing about the development of both POTN’s and CVSI’s SUPERMANIAS was that neither occurred inside of a cannabis mania, which is the far more usual formula
With Hemp Legalization slated to occur on or before 9/30/18, which is right around the same time as the DEA’s Rescheduling of CBD (there is a 90-day deadline from the FDA’s approval of Epidiolex on 6/25/28), the likelihood of a resultant Hemp & CBD Mania is very high
Consequentially, the time is now very ripe for another CBD Oil stock, or perhaps several CBD Oil stocks, to join CVSI and POTN in the annals of legendary parabolic runners, only this time the formula of SUPERMANIA development inside of a cannabis mania, in this case the very 1st Hemp & CBD Mania, is far more traditional
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CANB is the newest pure play CBD Oil stock that has very recently captured the attention of CBD Oil investors
CVSI SUPERMANIA riders and CVSI SUPERMANIA spectators alike seem to be taking a pretty close look at CANB these days
For each of the past 3 trading days, CANB has set a new record high daily volume
On 8/15/18, CANB traded 1.1M shares and ended down 5% on 28 trades with a dollar volume of $18,000
On 8/16/18, CANB traded 4.2M shares and ended up 41% on 201 trades with a dollar volume of $89,000
On 8/17/18, CANB traded 5.3M shares and ended up 22% on 213 trades with a dollar volume of $136,000
On 8/20/18, CANB traded 15.7M shares and ended down 10% on 580 trades with a dollar volume of $535,000
CANB has a current share structure as follows:
248M Shares Outstanding with only 85M shares in the float
At the current price of $.0271, that gives CANB a paltry market cap of $7M
So given the fact that we are still 4-6 weeks away from Hemp Legalization, and though the sector has just started to warm up over the past 2 trading days, it is certainly nowhere near manic at this point, what is the probability that CANB will become the next pure play CBD Oil stock to go parabolic?
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This is just the introduction...
Stay tuned for fhe remainder of the writeup
Sleek
AI
